The market for the KC100 is very competitive. Historically, KC has been able to compete by providing a quality product at a low cost. KC has not been the market leader but has steadily increased its market share. In fiscal 2022, the company's engineers developed a cost savings technology that reduces the direct materials per unit. The new technology was put into production in fiscal 2023. Management increased the unit selling price at the beginning of the 2023 fiscal year; competitor prices remained unchanged. Specific revenue and cost information is provided below. Material cost is the cost considered to be variable and conversion costs are fixed costs.
a) True
b) False